Purely hypothetical, unless someone actually wants to give it a gander.

I've seen videos of people doing lvl.1 only playthroughs to make the game harder, or realistic, or what have you. But stuff like one-handed keep leveling as they go through the game. So. My very long question is this:

If your doing a mostly level one playthrough, but you gather enough iron, silver, and gold to transmute into gold- and make your 800 million gold rings to get 100 level smithing. Could you then take a level up, and provided you have the materials on hand: make Dragon Bone/Scale, Deadric, or Stalhrim armor by level 5 or 6? Or would the moment you jump from level 1, bump you up to whatever level you would have been by taking your levels as they came up?